ERBIL, Kurdistan Region - Norwegian oil and gas company (DNO) announced the latest developments regarding its operations in the Kurdistan Region in its second quarter financial 2026 report, highlighting the gradual resumption of production and the proposed decision to acquire Genel Energy alongside new revenue records due to increased production in the North Sea.
Resumption of production in the Tawke and Peshkabur fields
DNO at the end of February 2026 suspended all production and drilling operations in the Tawke license, in which it holds a 75 percent interest, due to U.S. and Israeli airstrikes on Iran citing precautionary measures to preserve security.
On April 9, the company resumed part of its field activities, including workovers on older wells and restarting a campaign to drill eight new wells.
Production at the Tawke field resumed on June 28, and at the Peshkabur field on July 11. The company said it aims to restore and stabilize production levels to pre-suspension rates, provided no new negative security obstacles arise.
Production statistics and prices in Q2 2026
According to the report, DNO's average production share in the Kurdistan Region during the second quarter of 2026 dropped to 273 barrels of oil equivalent per day (boepd), down from 39,600 boepd in the first quarter, owing the decease to the suspension of production throughout most of April, May and June 2026.
DNO stated it currently sells its oil transparently in the local market at prices ranging between $35 and $39 per barrel.
Proposed Acquisition of Genel Energy
In a significant development for its operations in the Kurdistan Region, DNO states that it announced on August 7 a proposal to acquire all shares of "Genel Energy plc," which holds a 25 percent interest in the Tawke license. DNO set a price of 69 pence per share, a 38 percent premium over Genel Energy's closing share price on August 6. Under UK takeover regulations, DNO has until September 4, 2026, to announce a final decision.
"We are happy to trade a little market instability for greater price stability and improved security in Kurdistan," Bijan Mossavar-Rahmani, Executive Chairman of DNO, stated in the report regarding the situation in the Kurdistan Region.
The report also noted that the company is continuing discussions with the Kurdistan Regional Government regarding the recovery of overdue financial entitlements and establishing suitable commercial terms for future exports via the Iraq-Turkey Pipeline (ITP).
Last updated: 9:45 am
